4 hour Double bottom with non-true divergence - RISKY Long ATOM
Updated
Similar to the pattern looking to be forming on LUNA, we have a double bottom pattern looking to be forming on ATOM. This has a non-true RSI divergence (lower low below 27.32 was not formed on this most recent fall). With continued uncertainty in BTC and markets in general, I would be cautious of long entries still. You also have a small bullish divergence between yesterdays 4 hour candle that closed the day and the current candle (less than 1 point, which is very small and not something I generally consider significant).
Targets could be in the 10-30% range. A move of the trend line on the WT_LB above the indicator line would be further confirmation.
Targets could be in the 10-30% range. A move of the trend line on the WT_LB above the indicator line would be further confirmation.
Note
After today's fall we still do not have a true divergence, we do, however, have a continued flat RSI though a decline in price, which is potentially bullish, though not as strong a signal as a true divergence. Once again, this would be a counter trend trade and risky given current market conditions.Note
I would look for signs of reversal on lower time frames, such as candle closes above the double bottom box or true divergences on the 1 or 2 hour time frames.Order cancelled
Close below the box has invalidated this setup.
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